US poultry Co-op builds feed storage unit

Virginia Poultry Growers Cooperative has opened a grain storage facility to
help in the struggle against rising feed costs. This facility will allow the
company to save money on transportation and purchase of
corn.

Just north of Harrisonburg in Virginia, two 45 m (148 ft) high grain silos
store corn transported by rail from the Midwest. The first corn shipment was
received in mid April. According to President and General Manager James Mason,
with its new storage capacity, VPGC also can negotiate its own prices for
corn.

The VPGC processes 130,000 turkeys a week and sells its products to
more than 200 customers. However, input costs - price of corn and soybeans to
feed and grow a bird to 40 pounds (18 kg) - overshadow everything, said
Mason.

"Our costs will be more than $35 million higher this year than the
fiscal year that ended in March," Mason said. "The grain storage facility is one
way to mitigate that cost." Another way to mitigate the costs is to the number
of birds on the farms by 10% and to process a slightly lighter bird. Those
reductions will be spread evenly over the co-op's 156 growers.